The Arbor Asset Allocation Model Portfolio (AAAMP) finished at an annual all-time high for the third consecutive year, and ten out of the last eleven years. Despite the fact the S&P 500 is still 20% below the all-time high set in 2007; the AAAMP has finished the last 3 years at a new all-time high.

The AAAMP uses a risk adverse strategy that emphasizes capital preservation when asset valuations or risk are high. Because of compounding, it is more important to not lose a large portion of a portfolio than it is to try and capture all the gains of a rising market.

An investor needs to ask “How Much of Your Investment Portfolio Can You Afford to Lose?” Most investors are over diversified and over exposed to equities.  The AAAMP uses a tactical asset allocation strategy that allows it to underweight overvalued assets and overweight undervalued assets.

Are you a gambler or an investor? Would you be willing to accept lower returns when the market is rising in exchange for better long term returns and less volatility?

If a risk adverse investment strategy is appealing to you, take the time to explore my writings on this blog. Feel free to sign up for our e-mail service (sign up in right column) and Monthly Newsletter. If and when you feel comfortable with our low volatility strategy you may want to consider following the AAAMP through our Premium Service.